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Five engineering projects are being considered for the upcoming capital budget period. The interrelationships among the projects and the estimated net cash flows of the
Five engineering projects are being considered for the upcoming capital budget period. The interrelationships among the projects and the estimated net cash flows of the projects are summarized in the following table: Projects B1 and B2 are mutually exclusive. Projects C1 and C2 are mutually exclusive and contingent on B2. Finally project D is contingent on C1. The company has a budget of $70,000 Using the PW method, and assuming MARR = 15%: Develop an LP for this problem, Solve the LP and identify the best portfolio of projects Determine the expected value of the chosen bundle
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